by Calculated Risk on 6/04/2007 01:58:00 PM

From the Modesto Bee: Realty Red Flags (hat tip Brian)

“This year, we’re going to see prices drop in every market across the country for the first time since the Great Depression,” said Steven Smith, a property appraiser and consultant from San Bernardino.

Smith predicted that home values throughout the country will fall 25 percent to 50 percent below what they were at their peak, which was in 2005 or 2006, depending on the region.

This seems like an excessive price decline to me. I think prices might fall 20% in some bubble areas, in nominal terms, over several years. In real terms (adjusted for inflation), prices might fall 30% to 40% in some areas - but not "throughout the country".